Re: What Happens if a Parent Does Not Repay a Direct PLUS Loan
Quote:
Quoting
zero2805
Dont know what "te estate" means... what does that literally mean? his property?
Does that mean that the PLUS loan has no chance of becoming my personal responsibility or affecting me adversely later on down the road if I stop worrying about it completely now?
Will I inherit these things?
I am afraid that it will come and bite me in the future when I am least expecting it.
A person cannot inherit their parent's debts.
However, I will put this in a very simplistic way...
The will says that "son" gets everything and "son" is the executor of the will.
Son has to sell off all of the assets of dad's estate, and pay off all the creditors. If there is anything left over after doing that, son gets the amount left over. If there is not enough to pay off all the creditors...that is not son's problem as long as son followed the rules as to which creditors had priority.
Or, in the alternative, if dad dies without a will and son believes that dad was insolvent, son is free to refuse to deal with dad's estate. If son believes that there is enough that there would be something left over, then the son should apply to be executor/personal representative and must follow the rules.
Anything that passes outside of the estate...anything with a beneficiary, is not involved in the "rules".